HAPPY THURSDAY READERS!

I hope some of our Mississippi readers were able to tune into the Paul Gallo radio talk show Wednesday morning on "SuperTalk Mississippi" radio. I participated for about 25 minutes from about 8:15 to 8:45 am answering Paul's questions and also call in questions from listeners. I do hope it turned to be informative for listeners. The "SuperTalk" website is: www.supertalk.fm

I continue to get asked why is ethanol gas being sold and what determines how much ethanol gas must be sold. I originally developed the following article in 2009 and updated it a few days ago. I do hope this answers the questions.

Why is ethanol gasoline being sold?
By "Pete" Landry December 21, 2009 (Updated 9/20/11)
The Federal Environmental Protection Agency Regulation (EPA-40CFRPart80) titled “Regulation of Fuels and Fuel Additives: Renewable Fuel Standard Program” of 2005 mandates the use of “renewal fuels” in motor fuels. The following is a brief summary taken directly from the regulation: “SUMMARY: Under the Clean Air Act, as amended by Section 1501 of the Energy Policy Act of 2005, the Environmental Protection Agency is required to promulgate regulations implementing a renewable fuel program. The statute specifies the total volume of renewable fuel that the regulations must ensure is used in gasoline sold in the U.S. each year, with the total volume increasing over time. In this context, this program is expected to reduce dependence on foreign sources of petroleum, increase domestic sources of energy and help transition to alternatives to petroleum in the transportation sector. The increased use of renewable fuels such as ethanol and biodiesel is also expected to have the added effect of providing an expanded market for agricultural products such as corn and soybeans. Based on our analysis, we believe that the expanded use of renewable fuels will provide reductions in carbon dioxide emissions that have been implicated in climate change. Also, there will be some reductions in air toxics emissions such as benzene from the transportation sector, while some other emissions such as oxides of nitrogen are expected to increase. This action finalizes regulations designed to ensure that refiners, blenders and importers of gasoline will use enough renewable fuel each year so that the total volume requirements of the Energy Policy Act are met. Our rule describes the standard that will apply to these parties and the renewable fuels that qualify for compliance. The regulations also establish a trading program that will be an integral aspect of the overall program, allowing renewable fuels to be used where they are most economical while providing a flexible means for obligated parties to comply with the standard. DATES: This final rule is effective on Sept. 1, 2007. The incorporation by reference of certain publications listed in the rule is approved by the Director of the Federal Register as of Sept. 1, 2007. Through today's final rule, we are putting in place a compliance and enforcement program that implements the renewable fuel program, also known as the Renewable Fuel Standard (RFS) program. This program accomplishes the statutory goal of increasing the volume of renewable fuels that are required to be used in vehicles in the U.S. as required in Section 211(o) of the Clean Air Act (CAA) enacted as part of the Energy Policy Act of 2005 (the Energy Act or the Act). This final rule resulted from a collaborative effort with stakeholders, including refiners, renewable fuel producers and distributors, who together helped to design a program that is simple, flexible, and enforceable.” Each year, the EPA publishes the required percentage of ethanol/renewal fuel additives refiners must use the following year. For 2009, refiners are required to sell 10.21 percent of their total fuels sold as “renewal fuel” (in our area the additive is ethanol). This percentage is intended to increase yearly. The link to the 2009 requirements is http://www.epa.gov/fedrgstr/EPA-AIR/2008/November/Day-21/a27613.htm

In 2011, the EPA’s RFS standard requires refineries to sell 8.01% of their total fuels sold as “renewal fuels”.

Here is the link for the 2011 requirements: http://www.epa.gov/otaq/fuels/renewablefuels/420f10056.htm#3

total of 14 billion gallons of ethanol must be sold in 2011 per the EPA’s 2011 mandate. Based on the US consumption of gasoline at 140 billion gallons in 2010. The EPA’s mandate peaks out in 2022, when a total of 36 billion gallons of ethanol must be sold. Based on the 140 billion gallons of gasoline consumed, that equates to a total of 26% of total gasoline sales which must be “renewal fuels” in 2022. Since there is very little “bio diesel”, the vast majority of the renewal fuel mandate is met as ethanol blend.

"Pete" Landry Comments welcome: way2gopete@yahoo.com